Houston-based Main Street Capital Corporation (NYSE: MAIN) this week announced an investment of $12 million in CapFusion, further solidifying the company’s position as one of the fastest-growing business-to-business lenders in the market.
“CapFusion was founded to be a trusted lending partner for businesses in underserved market segments,” said company founder Ryan Sullivan. “Main Street’s investment will help us provide capital for growth to even more of the established small businesses that make up our client base.”
Main Street itself is funding $9.6 million of the investment, with the remainder coming from a co-investor. The investment is first-lien, senior secured term debt with equity warrant participation. The funds will be used primarily to advance CapFusion’s near-term growth opportunities and refinance existing debt.
In addition to the $12 million finalized this week, Main Street and its co-investor have committed to investing another $8 million in the near future and have indicated the possibility of further investments to fund future growth opportunities as well.
Founded in 2013, CapFusion’s technology-based platform simplifies the loan application process for clients by providing rapid credit risk assessments and matching customers with loan products structured to work with their cash flow. The company’s clients have more than $1 million in annual revenue on average and are spread across a number of sectors.